1. Tres monjitas Company produces chairs and has determined the following direct cost categories and budgeted amounts: Standard Inputs for 1 output Category Direct Materials Direct Labor Direct Marketing 1.00 0.30 0.50 Materials costs Input purchased and used Actual price per input Direct Manufacturing Labor: Labor costs Labor-hours of input Actual price per hour Direct Marketing Labor: Labor costs Labor-hours of input Actual price per hour Standard Cost per input Actual performance for the company is shown below: Actual output: (in units) 4,000 Direct Materials: $30,225 3,900 $7.75 1,240 $9.25 $7.50 2,100 $2.80 9.00 3.00 $11,470 $5,880 Required: a. What is the combined total of the flexible-budget variances? b. What is the price variance of the direct materials?

FINANCIAL ACCOUNTING
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Chapter1: Financial Statements And Business Decisions
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1. Tres monjitas Company produces chairs and has determined the following direct cost categories and budgeted amounts:
Standard Inputs
Standard Cost
for 1 output
per input
Category
Direct Materials
Direct Labor
Direct Marketing
1.00
0.30
0.50
Actual performance for the company is shown below:
Actual output: (in units)
4,000
Direct Materials:
a.
Materials costs
Input purchased and used.
Actual price per input
Direct Manufacturing Labor:
Labor costs
Labor-hours of input
Actual price per hour
Direct Marketing Labor:
Labor costs
Labor-hours of input
Actual price per hour
$30,225
3,900
$7.75
1,240
$9.25
2,100
$2.80
$7.50
9.00
3.00
$11,470
$5,880
Required:
What is the combined total of the flexible-budget variances?
b. What is the price variance of the direct materials?
Transcribed Image Text:1. Tres monjitas Company produces chairs and has determined the following direct cost categories and budgeted amounts: Standard Inputs Standard Cost for 1 output per input Category Direct Materials Direct Labor Direct Marketing 1.00 0.30 0.50 Actual performance for the company is shown below: Actual output: (in units) 4,000 Direct Materials: a. Materials costs Input purchased and used. Actual price per input Direct Manufacturing Labor: Labor costs Labor-hours of input Actual price per hour Direct Marketing Labor: Labor costs Labor-hours of input Actual price per hour $30,225 3,900 $7.75 1,240 $9.25 2,100 $2.80 $7.50 9.00 3.00 $11,470 $5,880 Required: What is the combined total of the flexible-budget variances? b. What is the price variance of the direct materials?
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